High income households are one of the fastest-growing segments in the real estate industry. The Austin area is named one of the top areas for rental properties for high income households. Renters earning $150,000 or more yearly have changed in the way they view the real estate market. The Great Recession of 2008 caused may Americans to rethink real estate investing, especially those in the higher-income bracket. With the shift in the way people view the real estate market, high-income earners are renting because it gives them more flexibility. Now 2.1 million top earners are now renting homes compared to just 774,000 high-income earners in 2007.

Home prices have increased and the lending standards are still strict, which has put some people out of the real estate market. While higher-income earners should be able to qualify for loans, the higher-income loans do require a significant down payment and many of these individuals do not even have $10,000 set aside in savings. Real estate investors are finding their property values have increased nearly 30-46% in several areas across the United States.

Why High Income Earners Aren’t Buying
Some affluent people do not want to buy a home, and prefer the ability to move as they want. Renting higher income homes gives them the possibility to enjoy modern homes and urban areas without needing to commit to the area long-term. There has been a change in the way people look at home ownership, and high-income earners are finding it is easier to enjoy the homes without all the responsibilities that come with home ownership.

High income tenants in Austin, TX are looking for both multi-family and single-family homes. Some of the reasons why people are choosing to rent and not buy in Austin include:
The fallout from the Great Recession
Barriers to home ownership
Rising demand for flexibility and centrality

Renters have been looking for new homes with modern conveniences. Landlords are looking for ways to keep their renters happy and in these homes. Offering modern updates and conveniences along with ensuring proper maintenance of the property is always handling will make your tenants happy. Hiring a property management company is a great idea for anyone investing in high income properties.

Keyrenter Property Management Austin, TX provides residential property management services to landlords of single family homes, duplexes, condos, and small multifamily units. We are not large apartment managers. Our purpose is to help landlords maximize the return on their investment property while eliminating the stressors associated with being a landlord (including bad tenants and maintenance issues). Services we offer include: property analysis, setting rent, tenant placement, leasing services, maintenance coordination, tenant relations, property inspections, rent collection. We offer superior customer service. Because we know how to find quality tenants that can meet the terms of their lease agreement, using Keyrenter’s 14-point tenant screening process, our eviction rate is below 1%.

Investors can rejoice in the state of the rental market in Austin, as it is up 6% from 2018! Austin is on track to continue to be one of the top housing markets. According to Trulia.com, the Austin rental market is thriving thanks to new employment opportunities. Some of the other metros poised to significantly grow this year include:

Colorado Springs, CO

Grand Rapids, MI

Jacksonville, FL

Bakersfield, CA

El Paso, TX

According to RentCafe.com. the housing market conditions are ranked based on several elements, one of which is employment growth. The residential vacancy rates and the median home listing prices are included in this calculation to determine the market conditions. Starter home affordability is ranked poorly in Austin, which does make it challenging for many people to purchase, forcing them to seek out rental options.

In addition to home rate affordability, Trulia uses a tool to determine the “hottest neighborhood” in the area. Some things they use include how many days a home was on the market compared to the prior year. Areas in close proximity to the airport showed a 16 percent increase in home rates. Most of the homes on the market were on for less than 43 days.

Austin is America’s Fastest Growing City

In a recent study, Austin was found to be America’s fastest growing city. Researchers used jobs and economic growth with socio-demographics to determine the projected job growth and poverty rate. With the number of startups in the Austin area, the growth has exceeded previous projections.

Between 2016 and 2017, Austin’s population gained over 55,000 new residents. Investors are finding multi-unit complexes to be an excellent income source with the number of people in need of housing. However, maintaining the units and tenants can be challenging. Anyone considering investing in Austin real estate rental property should consider hiring a property management company to make the process easier.

Renters insurance is designed to protect a tenant with costs associated with damage to personal property, medical costs, and liability costs. However, more than half of renters actually have renters insurance. Insurance allows tenants to have peace of mind in the event of serious disasters, but it is vital to read the policy prior to making a claim.

What is Renters Insurance?

Insurance policies for renters are designed to protect them
from personal property damage costs. Anyone renting a property can obtain an
insurance policy as they work similar to a homeowners insurance policy. Renters
insurance plans do have some differences that are vital to understand:

Renters insurance does not cover the actual
structure where the tenant lives. Building damage falls to landlords to cover
the costs.

The policies change with various insurance companies, but
there are some similarities found below:

Personal property damage. Personal property that
is damaged can be claimed on the policy as long as it falls under covered
peril.

Liability. If a person is injured in the
dwelling of the tenant, the tenant can claim this on their insurance policy due
to negligence.

Medical costs. Medical costs coverage are
offered if an individual is injured and needs medical treatment. Insurance will
help to protect tenants from serious financial problems based on the insurance
coverage limits.

Personal Property

A comprehensive insurance policy is designed to cover the
costs associated with replacing belongings. Clothing, furniture, computers,
jewelry, and more. A basic policy will reimburse the tenant for the loss of
property if it has been stolen or destroyed. Some of the reasons when an
insurance provider will consider a claim valid is due to the following events:

Fire

Hail damage

Wind damage

Explosions

Smoke damage

Theft

Vandalism

Water damage from faulty appliances

HVAC or plumbing system failure leading to
floods, fires, etc.

Each insurance company has their own standards they follow.
Tenants need to read the policy to ensure they are covered for all the issues
that could arise while renting the property. A property management company can assist
in helping landlords and tenants with information related to insurance needs.

How Much Insurance Do I Need?

To determine what insurance limits are needed, take an
inventory of everything. It is found that most renters own about $20,000
of personal property. Estimating the costs of all assets and property allows
for a better estimate of the amount of coverage needed.

Learning about renters insurance and what it covers can
assist tenants in their ability to properly cover themselves. Keyrenter
Property Management in Austin provides assistance to landlords and tenants with
information regarding insurance and more.